On Deck Capital has completed another successful round of funding, drawing in $19 million and boosting the total to $38 million from investors. The start-up aims to reinvent small business capital with a crafted, online measure of how to track business health.
On Deck eschews traditional avenues of Main Street business capital raising, which often relies on bank loan applications based on an owner’s personal credit score, by providing an online tool to measure business health. The start-up’s software measures many aspects of business’s behavior including customer base, cash flow, sales, and registered complaints to create an “On Deck Score.” The On Deck Score acts as the business’s credit score, which can be a much more accurate measure of the health of the business than a personal credit score. The result is a financial profile that can make the business a better candidate for lenders and simplifies the loan process.
The company has partnered with Equifax and has set its sights on the 5 million businesses that have 25 employees or less.
Read more at TechCrunch.